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6 Best Short-Term Business Loans 2020

Steve NicastroJanuary 6, 2020

At NerdWallet, we strive to help you make financial decisions with confidence. To do this, many or all of the products featured here are from our partners. However, this doesn’t influence our evaluations. Our opinions are our own.

Online lenders provide short-term business loans starting at three months. Compare options for good- and bad-credit borrowers.

Easily get real, personalized small business loan rates to compare -- not just ranges or estimates.

It's free and won't affect your credit.

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on Lendio's website

Our picks for

Short-term lines of credit

Lines of credit are more flexible and generally have shorter repayment periods than short-term loans, making them more suitable for managing cash flow.

Kabbage - Line of credit

Kabbage - Line of credit

Est. APR

24.00 - 99.00%

Min. Credit Score

560

Kabbage provides fast loans for business owners with bad personal credit, but rates can be high.

Pros

  • Financing up to $250,000 available within a few days.
  • Accepts low credit scores.

Cons

  • Rates are high compared to other online lenders.
  • Must have online checking or PayPal account to verify cash flow.
  • Fixed-fee structure means early repayment does not save interest.
Read full review

Qualifications

  • Minimum credit score: 560.
  • Minimum time in business: 1 year.
  • Minimum annual revenue: $50,000.
Fundbox - Line of credit

Fundbox - Line of credit

Est. APR

10.10 - 79.80%

Min. Credit Score

500

Fundbox offers a business line of credit to fill a cash-flow gap, and qualifying is easier than with other lenders.

Pros

  • Cash can be available by the next day.
  • Low minimum credit score requirement.

Cons

  • Rates are high compared to traditional banks.
Read full review

Qualifications

  • Minimum credit score: 500.
  • Minimum time in business: 3 months.
  • Minimum annual revenue: $50,000.
BlueVine - Line of credit

BlueVine - Line of credit

Est. APR

15.00 - 78.00%

Min. Credit Score

600

BlueVine's line of credit provides fast working capital for short-term borrowing needs.

Pros

  • Offers options for businesses less than a year old.
  • Cash can be available within 12 to 24 hours.

Cons

  • Short repayment term results in higher payment amounts.
  • Requires personal guarantee.
  • Not available in North Dakota, South Dakota or Vermont.
Read full review

Qualifications

  • 6-month line of credit
  • Minimum credit score: 600.
  • Minimum time in business: 6 months.
  • Minimum annual revenue: $100,000.
  • 12-month line of credit
  • Minimum credit score: 620.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $450,000.

Our picks for

Short-term business loans for fast cash

Business loans are term loans that provide a lump of cash upfront, repaid over a set period of time with fixed, equal payments.

OnDeck - Online term loan

OnDeck - Online term loan

Est. APR

9.00 - 99.00%

Min. Credit Score

600

OnDeck offers a fast term loan for small-business owners with less-than-stellar credit who want to expand.

Pros

  • Cash can be available within the same business day.
  • Requires low minimum credit score.
  • Less paperwork than most lenders.

Cons

  • Fixed-fee structure means early repayment will not save interest.
  • Requires frequent (daily or weekly) repayments.
  • Requires business lien and personal guarantee.
Read full review

Qualifications

  • Minimum credit score: 600.
  • Minimum time in business: 1 year.
  • Minimum annual revenue: $100,000.
  • No bankruptcies in the past 2 years.
StreetShares - Online term loan

StreetShares - Online term loan

Est. APR

8.00 - 39.99%

Min. Credit Score

600

StreetShares offers a business term loan for newer businesses that need to finance an expansion.

Pros

  • No prepayment penalty.

Cons

  • Requires weekly repayments.
  • Financing amounts limited to 20% of annual revenue.
Read full review

Qualifications

  • Minimum credit score: 600.
  • Minimum time in business: 1 year.
  • Minimum annual revenue: $25,000.
  • No bankruptcies in the past 3 years.

Our pick for

Short-term business loans for low rates

Credibility Capital - Online term loan

Credibility Capital - Online term loan

Est. APR

10.00 - 25.00%

Min. Credit Score

680

Credibility Capital offers low-cost business loans that work best for small-business owners with strong credit.

Pros

  • Competitive rates among online lenders.
  • No prepayment penalty.
  • Extra monthly payments can save interest cost.

Cons

  • Short repayment term results in higher payment amounts.
  • Requires high minimum credit score and revenue.
  • Requires business lien and may require personal guarantee.
  • Not available in Nevada, North Dakota, South Dakota, or Vermont.
Read full review

Qualifications

  • Minimum credit score: 680.
  • Minimum time in business: 2 years.
  • Minimum annual revenue: $250,000.
  • No bankruptcies in the past 5 years.

Easily get real, personalized small business loan rates to compare -- not just ranges or estimates.

It's free and won't affect your credit.

Get Started

on Lendio's website

Summary of Best Short-Term Business Loans 2020

LenderEst. APRMin. Credit Score
Kabbage - Line of credit

Kabbage - Line of credit

24.00 - 99.00%

560

Fundbox - Line of credit

Fundbox - Line of credit

10.10 - 79.80%

500

BlueVine - Line of credit

BlueVine - Line of credit

15.00 - 78.00%

600

OnDeck - Online term loan

OnDeck - Online term loan

9.00 - 99.00%

600

StreetShares - Online term loan

StreetShares - Online term loan

8.00 - 39.99%

600

Credibility Capital - Online term loan

Credibility Capital - Online term loan

10.00 - 25.00%

680

LenderEst. APRMin. Credit Score
Kabbage - Line of credit

Kabbage - Line of credit

24.00 - 99.00%

560

Fundbox - Line of credit

Fundbox - Line of credit

10.10 - 79.80%

500

BlueVine - Line of credit

BlueVine - Line of credit

15.00 - 78.00%

600

OnDeck - Online term loan

OnDeck - Online term loan

9.00 - 99.00%

600

StreetShares - Online term loan

StreetShares - Online term loan

8.00 - 39.99%

600

Credibility Capital - Online term loan

Credibility Capital - Online term loan

10.00 - 25.00%

680

Pitfalls of short-term loans

While short-term business loans provide fast cash, they do come with some disadvantages, including:

  • Higher cost: Short-term business loans typically carry a higher annual percentage rate, or APR, than long-term loans. Use NerdWallet’s business loan calculator to figure out how much a loan will cost you.
  • More frequent repayments: Some lenders require payments daily or weekly as opposed to monthly. Although these payments are smaller, their frequency can be an issue for businesses that have uneven sales or don’t always hold much cash in a bank account.
  • Risk of debt trap: The speed and ease of short-term business loans can become addictive. Instead of repaying the debt in full, business owners may be enticed to refinance and roll over the debt into a new loan.

Compare small-business loans

NerdWallet has created a comparison tool of the best small-business loans to meet your needs and goals. We gauged factors including lender trustworthiness, market scope and user experience, and arranged them by categories that include revenue and how long you’ve been in business.

Last updated on January 6, 2020

To recap our selections...

NerdWallet's Best Short-Term Business Loans 2020